Delphi plans to build two new factories in Russia by 2010 to tap into rapid Russian and eastern European market growth, German business newspaper Handelsblatt reported.

The Handelsblatt report cited remarks by Delphi executive Stefaan Vandevelde.

"Our teams are currently looking for suitable locations near Kaliningrad and Kaluga," Vandevelde told Handelsblatt in an interview.

In addition, Delphi plans to expand its site in Dimitrovgrad, Vandevelde said. The company also has production sites in Samara and Surgut and a representative office in Moscow.

Vandevelde also said that Delphi expects its Russian business to double by 2012.